Can Labour afford ambitious climate policy?

David Lammy says climate is central to his foreign policy. But his plans will be expensive.

Photo by Frank Augstein - WPA Pool/Getty Images

Surrounded by a host of tropical plants, trees and fungi in Kew Gardens, David Lammy argued something surprising: that climate change would be “central to all the Foreign Office does.”

In light of the current state of international affairs, it is remarkable that Lammy’s maiden speech – regally named ‘The Kew Lecture’ – addressed the climate crisis. Last week, Lammy was in Washington D.C. accompanying the prime minister to a meeting with Joe Biden and is expected at the UN General Assembly next week. Sources close to Lammy say he will only be attending one day of this weekend’s Labour Party Conference due to an extremely busy international schedule.

“Ultimately, there will be no global stability without climate stability,” Lammy said in his Ted Talk sounding speech, “and there will be no climate stability without more equal partnership between the global north and global south”. Lammy is obviously serious about the threat rising temperatures currently pose, at one point describing climate change as a “more fundamental” threat than terrorism.

He formally announced the establishment of a new clean power alliance, and the appointment of two new climate and nature envoys to bolster the UK’s diplomatic efforts across both issues. This new clean power alliance – or reverse OPEC as it has also been described by energy secretary, Ed Miliband’s team – will bring together the UK and international allies to work together on the deployment of renewable energy.

He explained the UK, and the clean power alliance, should look to help “more countries to leapfrog fossil fuels to renewable power systems” and “accelerate the roll out of renewables across the globe in a way that this government is doing at home.” Much of this revolves around the deployment of finance, particularly in developing nations. “The cost of capital in the Global South is often triple that in the Global North,” Lammy said, “we must unlock global finance on a far, far, larger scale so we can back ambitious plans from those moving away from fossil fuels.” Lammy described these plans as being “critical” to his “progressive realist approach to this crisis”.

But are the economic circumstances right for such ambition? In the Department for Energy and Net Zero, Miliband’s aspirations for tackling climate change equal Lammy’s in their boldness. But both are beholden to the budget and spending review which is currently being ironed out by Rachel Reeves and the Treasury. Given the chancellor’s gloomy messaging and tough fiscal rules we might ask: will their enthusiastic priorities will survive the autumn?

The UK’s financial resilience will be writ large once delegates assemble for Cop29 in November. As leaders descend on the Azerbaijani capital of Baku, perhaps then the fate of Lammy’s profound international climate ambitions will be clearer.